27 September 2023

Golden Metal Resources plc

('Golden Metal' or the 'Company')

Substantial Skarn & Porphyry Copper Targets Identified - Garfield Project

Analysis Confirms Two Significant Copper Target Zones with Potential for Porphyry and Skarn-Type Deposits

Golden Metal Resources plc (LON:GMET), a strategic mineral exploration and development company focused on Nevada, USA, is pleased to announce exploration work has confirmed the potential for large scale porphyry and skarn type copper mineralised bodies at the Company's 100% owned Garfield project located within the prolific Walker Lane Mineral Belt in Nevada, USA ("Garfield" or the "Project").

Background:

Golden Metal previously discovered two significant copper zones at Garfield as detailed in the market announcement on 22 May 2023 which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/GMET/garfield-project-significant-copper-systems/15965480

The two significant copper (Cu) zones were named the "Power Line Zone" (or "Power Line") and "High-Grade Zone" (or "High-Grade"); (collectively the "Zones") where historical rock sampling results returned up to 2.6% Cu at Power Line and 5.53% Cu at High-Grade, highlighting the significance of these newly defined copper mineralised systems at Garfield.

The significance of the findings announced in May 2023 led the Company to engage Simon Griffiths through his consulting firm 3PXS to conduct a detailed geochemical analysis over the Garfield Project. Mr. Griffiths has over 32 years of mineral exploration experience, including 10 years as Chief Geochemist as well as Chief Geologist at Barrick Gold.

The findings from this follow up work are significant, demonstrating the potential for Garfield to host significant large-scale skarn and porphyry type mineralised bodies. 

Key highlights are listed below however the results are particularly significant as the presence of both skarn and porphyry type alteration within a single target zone (e.g. "High-Grade Zone") signify that a fully telescoped mineralised system may be fully preserved at Garfield.

HIGHLIGHTS

High-Grade Zone

-      Within the northeast of the "High-Grade Zone" a hornfels zone was discovered (with tellurium & arsenic enrichment) that is open for expansion which highlights the potential for a skarn deposit at Garfield.

-      Also, at the "High-Grade Zone", sericite altered volcanics with copper-lead-zinc enrichment were delineated near the southwest which provides evidence of a buried mineral system with possible porphyry (intrusive) affinity.

-      Due to the potential volume (tonnage) associated with the High-Grade Zone because of both the size of the geochemical anomaly as well as the target having porphyry (intrusive) deposit affinity, this area is designated as a high priority for follow up exploration.

Power Line Zone

-      Data analysis over the Power Line Zone has indicated the potential for multiple mineralised structures/splays which require field verification.

Priority Next Steps at Garfield

-      In light of the above, the Company will be conducting priority follow up prospecting and rock sampling at Garfield, with focus on the "High-Grade Zone", which is to commence shortly.

-      Updates from this important field programme will be communicated to the market as soon as possible.

Oliver Friesen, CEO of Golden Metal, commented: 

"We are very excited about the discovery of what appears to be both skarn-type as well as porphyry deposit geochemical signatures within the Garfield Project's High-Grade Zone, where minimal historical rock sampling returned up to 5.53% copper.

"As shareholders may well be aware there is an urgent need for the discovery of large-scale copper deposits in secure jurisdictions and the Garfield Project is, in our view, demonstrating this potential.

"As a result of this discovery, follow up field work will follow imminently and we look forward to providing updates from this exploration in due course, including photos of both the Project location and select rocks extracted for full geochemical analysis."

Detailed Overview:

The geochemical soil survey results have identified two distinct zones of significant copper anomalies:

·    Power Line Zone - a northeast-southwest trending Cu-in-soil anomaly which extends for over 1,500m in length (remains open towards the southwest), located in the west of the Project area. The Power Line Zone connects up the original Garfield showing with a previously isolated zone located towards the southwest, where limited historical rock sampling results returned up to 2.6% Cu and 0.536g/t Au; and

·    High-Grade Zone - a circa 1.5km by 0.8km Cu-in-soil anomaly (remains open towards north, south and east), located in the southeast of the Project area and approximately 1 km southeast of the Power Line Zone. Limited historical rock sampling completed near what is now the western end of the High-Grade Zone returned up to 5.53% Cu, which highlights the potential of this large, newly defined copper mineralised system.

Table 1 - Map highlighting the location of the Power Line and High-Grade Zones as well as the newly discovered porphyry and skarn-type mineralised zones which are high-priority target areas.

Further Information

A total of 447 individual soil samples were collected at either 50m or 100m station spacing and along 100m spaced lines. The sample grid was set up to provide coverage over the original Garfield copper (Cu), silver (Ag) and gold (Au) showing (see attached map) located within the Garfield Project, as well as over two anomalies which were identified by a previously obtained and analysed Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER satellite) and European Space Agency Sentinel-2 satellite datasets ("Hyperspectral Analysis" or the "Analysis"). 

The previously obtained Hyperspectral Analysis results can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/new-copper-anomalies-identified-garfield-nevada/15175582

Analysis

All soil samples were prepped and analysed at ALS' laboratory in Reno, Nevada. Assays were determined using the analytical package ME-MS41 comprising aqua regia digestion with super trace inductively coupled plasma mass spectrometry (ICP-MS) analysis providing extremely low detection limits for analysis of soils. A total of 41 elements were reported as part of this analysis.

Property Ownership

Golden Metal holds a 100% interest in the Garfield Project through its wholly-owned Nevada operating company, Golden Metal Resources LLC.

Bibliography

Hornfels: A metamorphic rock formed at the contact between any rock and a hot igneous body.

Sericite: A type of clay that is often formed due to alteration caused by a nearby igneous body.

Porphyry: A igneous rock. Porphyry deposits are typically copper-rich deposits that are formed from hydrothermal fluids that originate from a voluminous igneous (or magma) body.

Skarn: Skarn-type deposits are formed in a similar process to porphyry orebodies. Skarn deposits are developed due to replacement, alteration, and contact metasomatism of the surrounding carbonate country rocks by ore-bearing hydrothermal solution adjacent to a mafic, ultramafic, felsic, or granitic intrusive body.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Golden Metal Resources plc to provide technical support.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the timing and granting of regulatory and other third party consents and approvals, uncertainties regarding the Company's or any third party's ability to execute and implement future plans, and the occurrence of unexpected events. 

Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

For further information visit www.goldenmetalresources.com or contact the following:

The Projects:

Pilot Mountain Project

The Pilot Mountain project is an advanced exploration and mineral resource definition stage project located in Mineral County in western Nevada. The project covers an area of 14.80 km2 (3,656.1 acres) and is located 200km southeast of Reno and 18km east of Mina, Nevada. It is well situated for the supply of power, water and skilled labour and proximity to transport infrastructure in Mineral County and is centred around four existing mineral deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of which possess significant skarn-style tungsten-copper-silver-zinc mineralisation. The Pilot Mountain project consists of 176 active lode mining claims and 4 filed mill site claims. The four mill site claims filed at the former Dunham mill site have secure access to groundwater supply sufficient for the proposed project.

Kibby Basin Lithium Project

The Kibby Basin Project covers two claim packages which are prospective for lithium brine mineralisation. The southern claim package is less than 250m from a 2022 drillhole which returned a significant interval (169m) of lithium brine mineralisation which was determined to be open in all directions. The Project is less than 5km to the southeast of the Company's flagship Pilot Mountain Project.

Golconda Summit Project

Golden Metal is the operator of the Golconda Summit project, which is held under an earn-in right to acquire up to 100 per cent. of the project from the mineral claim owner pursuant to an option agreement. The Golconda Summit project is an exploration stage gold and silver project located in Humboldt County and situated at the confluence of the Getchell and Battle Mountain - Eureka metallogenic trends, and consists of 44 lode mining claims, covering a total area of approximately 3.22 km2 (795.4 acres) located approximately 27km east of Winnemucca.

Garfield Project

The Garfield project is an early exploration stage copper, gold and silver property consisting of 39 lode mining claims covering 3.23 km2 (797.9 acres) located in Mineral County, Nevada, approximately 14km due east of the town of Hawthorne and 120km due west-northwest of Tonopah.

Stonewall Project

The Stonewall project is an exploration stage gold-silver property prospective for epithermal gold-silver mineralisation. The property consists of 19 lode mining claims covering 1.59 km2 (392.5 acres) located on the northern flank of Stonewall Mountain, on the western edge of the Nellis Airforce Range Restricted Access Area, in Nye County, Nevada, approximately 24km south-east of the historic gold mining town of Goldfield and 60km due south of Tonopah.